Final answer:
The correct option is d. When income falls, the demand for normal goods such as televisions will fall due to the direct relationship between income and demand for these goods. Financial market changes that can lead to a decline in interest rates include a rise in the money supply, while an increase in loan quantity usually results from a rise in demand or supply of money.
Step-by-step explanation:
If televisions are a normal good, then when income falls, the demand for televisions will fall. This is because normal goods have a direct relationship between income and demand. When people have higher incomes, they tend to buy more of such goods, and when their income decreases, they buy less. On the other hand, an inferior good has an inverse relationship to income; demand for these goods increases as income falls.
With regards to the changes in the financial market, a decline in interest rates is most likely to occur when there is a rise in supply of money. Conversely, an increase in the quantity of loans made and received would typically be the result of a rise in demand for loans or an increase in the supply of money available to lend.